Shares of the Montreal-based bank National Bank of Canada (TSX:NA) have increased 14.9% in 2017 and 31% year over year. National Bank is the sixth largest major bank in Canada. It boasts a significant footprint in Quebec compared to its presence in other Canadian provinces. Regardless, this is a rock-solid option for growth and dividend seekers alike.
The bank released its third-quarter results on August 30th. Net income climbed 8% to $518 million compared to $478 million in Q3 2016. Year-to-date the bank has reported $1.5 billion in net income compared to $949 million the previous year. Personal and commercial banking income shot up 21% to $240 million with mortgage and commercial lending showing impressive growth.
Wealth management and financial markets increased 31% and 8% respectively. Trading activity revenues were up in financial markets in particular revenues from equity securities. The stock boasts a dividend of $0.58 per share representing a 3.7% dividend yield.
In a previous article I discussed the impressive economic performance of the province of Quebec relative to its neighbours. It continues to post attractive growth and the housing sector in the city of Montreal remains largely untouched by regulators that have brought in foreign buyers taxes to Vancouver and Ontario.
National Bank has a foothold in a booming economy and a housing sector that is both affordable and unburdened by the dynamics that brought overheating to other Canadian markets. The bank is set to release its fourth-quarter results on December 1st.